Myths and Realities about Mental Health and Work

The costs of mental ill-health for the individuals concerned, employers and society
at large are enormous. Mental illness is responsible for a very significant loss of
potential labour supply, high rates of unemployment, and a high incidence of sickness
absence and reduced productivity at work. In particular, mental illness causes too
many young people to leave the labour market, or never really enter it, through early
moves onto disability benefit. Today, between one-third and one-half of all new disability
benefit claims are for reasons of mental ill-health, and among young adults that proportion
goes up to over 70%. Indeed, mental ill-health is becoming a key issue for the well-functioning
of OECD’s labour markets and social policies and requires a stronger focus on policies
addressing mental health and work issues. Despite the very high costs to the individuals
and the economy, there is only little awareness about the connection between mental
health and work, and the drivers behind the labour market outcomes and the level of
inactivity of people with mental ill-health. Understanding these drivers is critical
for the development of more effective policies. This report aims to identify the knowledge
gaps and begin to narrow them by reviewing evidence on the main challenges and barriers
to better integrating people with mental illness in the world of work.